TPG eyes $2b second close on Asia fund, reduces final target – report

According to Dow Jones, investor interest began to pick up after TPG made a near five-fold return on its investment in India's Shriram Transport Finance after selling a 10% stake for $301 million last month.

TPG is also on course to generate a healthy profit on Bank Tabungan Pensiunan Nasional (BTPN), having agreed - alongside co-investor Northstar Pacific Partners - to sell the bulk of its stake in the Indonesian lender to Sumitomo Mitsui Banking Corp. (SMBC) for $1.56 billion.

TPG Asia VI launched in April of last year and participating LPs include San Diego County Employees' Retirement Association and Second Swedish National Pension Fund, according to AVCJ Research. Its predecessor vehicle closed at $4.25 billion in early 2008 after about one year in the market.

The challenging fundraising environment - $46.8 billion was committed to Asia-focused vehicles in 2012, down 35.8% year-on-year - is weighing on the efforts of all GPs. There is also considerable competition for capital, with several regional buyout funds currently raising their first funds since global financial crisis.

For TPG specifically, a degree of turnover within the Asia team is perceived as hindering fundraising efforts. However, the GP is about on pace with The Carlyle Group, which launched its fourth regional buyout fund around the same time and was at the $1.5 billion mark as of early May. Carlyle is also eyeing a final close of $3.5 billion by the end of the year.

KKR, meanwhile, is expected to announce a final close of $6 billion on its second Asia fund in the next few weeks. And of the indigenous regional players in the market, both Affinity Equity Partners and MBK Partners reached first closes on their latest funds just a few months after launch.

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• Topics
• Fundraising
• Fundraising
• TPG Capital
• KKR
• The Carlyle Group
• buyout
• Boyu Capital
• PAG